Dsquares: Partnering to deliver innovative conversational loyalty experiences
Deep dive into the importance of conversational loyalty experiences and how our partnership with Dsquares brings it to life.
The UAE and Kingdom of Saudi Arabia (KSA) are projected to see significant increases in online shopping over the next five years.
With smartphone penetration being exceptionally high at 97%, customers in both countries enjoy the convenience of mobile-first shopping.
However, this has also led to increased competition within the eCommerce sector and hence, the need for brands to provide exceptional digital experiences that focus on:
- Customer retention with personalized experiences
- Customer loyalty with conversational programs and rewards
And that’s where the Dsquares and Infobip partnership comes in.
Dsquares, a leading loyalty solution provider in the region, partnered with us to deliver innovative conversational loyalty experiences.
By combining Dsquares’ expertise in creating tailored reward programs with our omnichannel conversational experience capabilities, we’re able to offer clients engaging and personalized loyalty solutions that drive customer satisfaction, retention, and ultimately loyalty.
To deep dive into the importance of conversational loyalty experiences and our partnership, we spoke with Hazem Shorbagy, VP Partnerships at Dsquares who shared his insights.
Loyalty is key for eCommerce success
The Middle East’s eCommerce market is already valued at billions of dollars and is poised for exponential growth.
Growth of eCommerce market in Middle East
(Source: Statista)
Leading this is KSA and UAE who are the regional leaders, with customers increasingly embracing digital shopping. Making loyalty programs a cornerstone for businesses looking to thrive in this competitive landscape.
When it comes to mobile spending, according to The Future Shopper report, both UAE and KSA have seen a 32% increase in online shopping done via mobile devices. And leading the channels for these conversations is WhatsApp with the highest mobile channel penetration:
- UAE: 85.8% of the population aged 16-64 use WhatsApp
- Saudi Arabia: 83.1% of internet users use WhatsApp
For brands, this represents a golden opportunity to uncover new touch points and incorporate the latest technologies that will enhance the shopping experience, and foster brand loyalty.
The opportunities in the loyalty landscape and in the retail business are unlimited. And I believe that even the challenges that we face are opportunities. From our perspective, the ability to offer personalized loyalty programmes that leverage the power of AI and machine learning can easily, deeply resonate with each customer persona.
Hazem Shorbagy
VP Partnerships at Dsquares
Personalization: the cornerstone for a successful loyalty program
To build a loyalty program that clicks with customers, you need experiences that are different and unique. There are billions of customers, and each one expects a personalized conversation, on a channel of their choice.
- 80% of consumers in the UAE expect companies to understand their needs and expectations
- 66% expect offers to be personalized
(Source: Think with Google)
“I see the most important aspect of a loyalty program is to be different from other loyalty program in the market. Otherwise, the customer will never feel special about your loyalty program. So, personalization is a key component of building your loyalty program,” says Shorbagy.
He adds, “You have to be different in offering unique experiences to your customers and also make sure that the way of communication between you and your customers is efficient with high quality.”
Conversational experiences: the key differentiator for loyalty programs
Loyalty programs should provide easy point tracking, reward redemption, and real-time updates on exclusive deals, ensuring a convenient and engaging experience. And to do this, redemption should be as easy as chatting with a friend, and that’s where conversational experiences over WhatsApp can help differentiate your loyalty program.
That’s why you need to enhance your customer experiences and customer engagements through chatbots, by applying omnichannel strategies. And Infobip can help us in this aspect by providing a seamless communication through WhatsApp and SMS. This can significantly boost customer engagement
Hazem Shorbagy
VP Partnerships at Dsquares
Use case: Redeeming loyalty coupons via a WhatsApp chatbot
Imagine this scenario: a customer has a chocolate wrapper with a unique QR code that can be used to redeem a loyalty coupon. They decide to use a WhatsApp chatbot to redeem the coupon.
- Customer initiates conversation: The customer adds the WhatsApp chatbot number to their contacts and sends a message.
- Chatbot greets the customer: The chatbot greets the customer and asks how it can help.
- Customer requests redemption: The customer responds by saying, “I want to redeem my loyalty coupon.”
- Chatbot requests QR code: The chatbot prompts the customer to share the QR code from the chocolate wrapper.
- QR code scanning: The customer sends a photo of the QR code. The chatbot uses image recognition technology to scan and process the QR code.
- Coupon verification: Once the QR code is scanned, the chatbot verifies the coupon’s validity and checks if it’s still active.
- Personalized recommendation: Based on the customer’s previous purchases and loyalty history, the chatbot might suggest a complementary product or offer a personalized discount.
- Redemption confirmation: If the coupon is valid, the chatbot confirms the redemption and provides instructions on how to claim the reward.
The technology powering the personalized conversational experience:
- AI: The chatbot uses AI to understand the customer’s intent and respond in a natural and conversational way.
- Contextual awareness: The chatbot can remember previous interactions with the customer, allowing for personalized recommendations and a more tailored experience.
- Emotional intelligence: The chatbot can respond to the customer’s emotions and adjust its tone accordingly, creating a more empathetic and engaging conversation.
By using a WhatsApp chatbot, the chocolate company can provide a convenient and personalized way for customers to redeem their loyalty coupons, while also building stronger customer relationships.
But just providing a QR code and chatbot experience isn’t enough. A strong loyalty program must be backed up by:
- Efficient customer support: Ensure all customer escalation complaints are resolved promptly and effectively to maintain high satisfaction levels and minimize churn.
- Data security and privacy: Protect sensitive customer data to comply with regulations and build trust, especially in the context of large-scale data utilization.
- Gamification of engagement: Implement gamified loyalty experiences, such as badges for milestones and achievements, to enhance customer engagement and excitement.
- Tiered loyalty programs: Offer exclusive benefits to higher-tiered customers, including early access to sales, to create a sense of exclusivity and encourage continued loyalty.
Key metrics to measure your loyalty program success
To assess the effectiveness of your loyalty program, focus on these key metrics:
- Redemption rate: Measure the percentage of loyalty points or coupons that are redeemed. A high redemption rate indicates that customers find the rewards valuable and are actively using the program.
- Churn rate: Track the rate at which customers stop participating in the loyalty program. A low churn rate suggests that customers are satisfied and committed to the program.
- Engagement rate: Analyze metrics like open rates, social media engagement, and app usage to assess customer interaction with the program. A high engagement rate indicates that customers are actively participating and finding value in the program.
Shorbagy says: “We have different metrics in the loyalty programme and the loyalty programme consists of several elements and factors. You can judge if this loyalty programme is working well or not. So, for example, if you have a seamless customer experience and you have great value are giving to the customers personalization in place, unique rewards, everything in place, but you don’t communicate well on that programme, at the end of the day, the customers won’t know about your programme. So, it will affect directly the redemption rate.
“That’s why when we are saying this program is working well, we must check the redemption rate, engagement rate, churn rate, and the spend development of the customer. Any retailer having a loyalty programme must keep a close eye on those metrics to make sure that the loyalty program is really working.”
Dsquares x Infobip: co-creating conversational loyalty experiences
The Dsquares and Infobip partnership is a testament to the power of collaboration.
We at Dsquares consider Infobip a trusted partner. A partner that we can truly depend on. Since we started our collaboration together, we have seen enhancements, quality, and effectiveness of our communication channels.
Hazem Shorbagy
VP Partnerships, Dsquares
Together, we’re excited to continue co-creating groundbreaking conversational loyalty solutions that drive customer engagement and satisfaction in the Middle East and beyond.
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